Are you finding it difficult to navigate and understand what aged care fees apply? We are here to help.
There are 4 broad categories of fees:
- Accommodation
- Daily living expenses
- Care services
- Higher everyday living fee
Accommodation
You will be asked to pay the full advertised room price which varies between homes, commonly around $600,000 is the average in Tasmania.
You can fund this by either a lump sum payment called a refundable accommodation deposit (RAD) which is the equivalent of buying a room or paying a daily amount called a daily accommodation payment (DAP) which is the equivalent of renting a room, or a combination.
If the government determine that you do not have the means, you will be able to ignore the advertised room price (RAD) and the government will determine the fees you pay either as a lump sum called a refundable accommodation contribution (RAC), the daily amount called a daily accommodation contribution (DAC), or a combination of both.
For residents entering residential care from 1 November 2025, providers will apply a 2% retention rate on the lump sum amount paid every year for a period of 5 years and from 20 March 2026, DAPs will be indexed every 20 March and 20 September in line with the consumer price index.
Daily living
All residents, regardless of their means, will be asked to pay $63.82 per day, the equivalent of 85% full single age pension, for general services such as food, cleaning and electricity.
Care Services
If the government determines that you have the means to co-contribute towards your cost of care you may be asked to pay additional fees, a hotelling contribution and a non-clinical care fee of up to $101.16 per day.
Higher everyday living fee
You may be asked to pay this fee for additional services such as meals, transport, Foxtel, wine and newspaper. Refer to the Residential Care Agreement to see if this fee applies to you.
For more information on how these fees apply specifically to you, please contact us on (03) 6234 4413 to book an appointment with our accredited aged care specialist financial adviser Emma Leith.
All fees quoted are as at 9 October 2025.